EC could block Dutch state’s loan guarantee agreement with ING
THEEUROPEAN Commission (EC) has prolonged its review of a €22bn (£19.5bn) loan portfolio guarantee between ING and the Dutch state, saying the government may have paid too much.
ING and the Dutch state struck a deal in January, under which the government agreed to guarantee 80 per cent of a €27.7bn portfolio of so-called Alt-A and sub-prime residential mortgage-backed securities.
The government is due to receive 80 per cent of the cash generated from the portfolio, which it took on at a 10 per cent discount to par value.
The EC gave the deal initial six-month approval in March while it conducted an investigation, but said in a statement yesterday that it “continues to have doubts that the price… is justified”.